Mining ZimbabweLatest Mining News, Policy and Industry Updates

Nkayi villagers in Matabeleland North Province living on the shores of Shangani Dam are crying foul after hordes of gold panners invaded their area in search of gold.

Gold planners from other parts of the country are said to have descended on the area after significant gold deposits were allegedly discovered soon after the Government imposed a national lockdown to slow down the spread of Covid-19 in March last year.

Large numbers of people have been trekking to the area, much to the chagrin of the local community, which fears that their water sources are already polluted with dangerous chemicals such as mercury.

For Mrs Sibonile Ndlovu (57), a widow from Nkuba Village under Chief Tshugulu, their presence is disrupting their way of life.

“They came last year during the Covid-19 lockdown and they just don’t care about what people are going to survive on when they leave. We rely on this Shangani River for our irrigation projects to feed our children while it is also our source of water to drink, but ever since they descended, we have been forced to drink contaminated water and even our irrigation produce has reduced.”

Mrs Ndlovu’s neighbour, Mr Nkosiyabo Donga said different groups of gold panners had marked their territories in the area, leading to conflicts.

“They don’t allow people to fetch water or send their livestock to drink where they mine from. The challenge we face is that we hear that drinking water that has mercury or other substances they use to mine gold is dangerous and we think that is evident because we used to fish at some certain points of the river during grazing and since last year, all those fisheries can be hardly found.”

Other affected villagers are from Mkhalandoda, Mawuwini, Mathetshaneni and Sibuyu. The area’s kraal head, Mr Misomi Gwebu said villagers now opt for dam water and boreholes, although during the summer period they tend to dry up. He said they were avoiding getting water from the Shangani River where gold panners were based. — The Citizen Bulletin.

Sunday News

WOMEN’S rights organisations have urged government to investigate reports of abuse of women in mining to promote justice and encourage female participation in the sector.

In a joint statement after a virtual gender and extractives symposium last week, four women organisations said: “We now, therefore, call on the government and relevant stakeholders to provide continuous oversight and monitoring of the activities of mining companies.”

The women’s groups — Women and Law in Southern Africa, Zimbabwe Women’s Microfinance Bank, Zimbabwe Women Resource Centre Network and the Zimbabwe Women in Mining Association — called for protection of women as they conduct mining business.

“The government through the Zimbabwe Gender Commission should monitor the violation of environmental, economic, social and cultural rights of women affected by mining activities in their communities.

“The commission should investigate reports and institute the necessary processes that ensure communities get access to remedy.”

The organisations also applauded the government for joining forces with stakeholders to address machete violence among artisanal miners.

“Although over the years, there have been changes in men’s attitudes towards taking more responsibilities for unpaid care work, promotion of decent work for women in sectors such as the extractives industry is still a challenge which calls for urgent attention.

“Decent work is the only sustainable way out of eradicating poverty while building the necessary social cohesion.

“Therefore, there is a need for continued partnerships and engagement of stakeholders, policymakers, and relevant government ministries to promote decent work for women in the extractive industry.”

NewsDay

PASSERS-BY along the Gweru-Zvishavane Highway cannot help but shake their heads in dejection as they watch the once picturesque landscape slowly turning into unsightly craters and gullies — the work of small-scale miners scooping out tonnes of soil chasing fortunes hidden underneath the earth’s belly.

When NewsDay Weekender visited Shurugwi last week, scores of people could be seen loading soil and making off with trucks carrying heaped sedentary rocks from makeshift mines dotted around the area.

While locals are concerned as they helplessly watch their environs turned into wasteland, the activities are a boon to those in the thick of things, especially Chinese miners.

Tafara Nelson (38) says while chrome mining has been his only source of livelihood for the past decade, it is not rewarding.

“Since we don’t own mining equipment, we depend on Chinese contractors. After providing us with equipment, we are required to sell our produce to them,” he says.

Nelson, who is contracted by Chinese miner Jinan, says the language barrier also makes it difficult for them to negotiate fair payment terms.

“The result is that we get unfavourable conditions,” he adds.

Another small-scale miner, Martin Chitohwa, contracted by Zimasco, says as long as the status quo remains, locals will toil for nothing.

“Contract miners only get the final product price when graded and weighed at their Kwekwe plant. Who will ever know if the grading and weighing was done fairly?” Chitohwa asks rhetorically.

“They usually come to collect ore at night. In the morning, we are told, for example, that your chrome ore was 22 tonnes. Of that, 15 tonnes were lumpy and seven tonnes were fines and the grade was 42%, so we are paying you for the 15 tonnes at agreed price which is usually low.

“They penalise you on the fines. However, some smelters take both fines and hardy lumpy ores and price is indifferent as long as your fines are free from rubble.”

He says predatory pricing pushes local miners out of business.

Chinese company Sinosteel Corporation is the biggest shareholder in Zimasco, one of the country’s largest chrome-mining companies.

A Jinan official, Zhou Zhengliang, says while he does not deny that there are some bad apples in the chrome value chain, their operations are above board.

Zimasco chief executive John Musekiwa had not responded to questions sent to him by the time of going to print.

However, Confederation of Chrome Miners Association president Isaac Muguti Chivendera says smelters have exploited small-scale miners for too long.

“Small-scale miners are walking home empty-handed after delivering their product to private smelters, especially the Chinese,” he says.

“Buyers come to our claims and promise good prices, for example US$55 per tonne, carry the product to their smelting plants, then when you get there, they factor in transport costs and fines like breakages, then end up taking ore for a song. It then becomes difficult to continue mining because we pay as much as US$20 per tonne for labour.”

Former Zimbabwe Mining Federation vice-president (chrome and base metals) Simon Sigauke says this is a worrisome development as Zimbabwe is losing out to unscrupulous buyers.

“Chinese miners hire out machinery to small-scale miners at exorbitant rates and recover their money upon buying their proceeds. Our all-weather friends are making a killing from equipment that they would have imported duty-free,” he says.

“To make matter worse, most Chinese companies don’t issue out invoices as proof of payment. One wonders how these miners account for their tax obligations. Apple Bridge needs resuscitation urgently.”

Apple Bridge was a State entity, which bought chrome from small-scale miners after they complained that were being fleeced by private smelters buying the mineral below the market price. However, it is facing viability challenges.

“There is great need for government to resuscitate Apple Bridge for viable price monitoring and protection of local miners from being exploited by unscrupulous merchants,” Sigauke adds.

However, analysts say predatory pricing in one of Zimbabwe’s main exports will have negative after-effects on the socio-economic well-being of the country.

“Illicit financial flows (IFFs) occasioned by underhand dealings in the mining sector have deleterious effects on both the economy and society putting into perspective that minerals are Zimbabwe’s cash cow,” says University of Zimbabwe lecturer on natural resources governance, Babra Maiwasha.

“It is pertinent to note that the achievement of the US$12 billion mining sector and the broader Vision 2030 rests on the mining sector to boost domestic revenue. This precipitates the need for effective reforms and safeguards to foster transparency and accountability in the mining sector,” she adds.

“While these IFFs are difficult to quantify, they have a negative effect on the socio-economic status of the country in that funds that could have been used to develop these areas are instead illegally taken to tax havens through myriad of tax evasion tactics,” Centre for Natural Resource Governance director Farai Maguwu says.

The mid-term monetary review presented by Finance minister Mthuli Ncube last month was gloomy, revealing that chrome output for 2020, at 1 272 million tonnes, remained below the annual target of 1 800 million tonnes and was 18% less than the 2019 output of 1 550 million tonnes.

Basing on potential that lies in the sector, the government in 2019 launched an ambitious US$12 billion mining sector economy by 2023, a 312% increase from the current US$2,91 billion.

NewsDay

CABINET has approved the Greater Chinhoyi Copper Development Programme which is set to contribute to the US$12 billion mining economy by 2023.

The Government has recognised the mining industry as one of Zimbabwe’s major economic sectors to drive the country towards an upper middle-income economy status by 2030.

It is in this context that President Mnangagwa in 2019 launched the US$12 billion mining strategy.

Speaking during a post-Cabinet media briefing meeting on Tuesday, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said: “Cabinet approved the Greater Chinhoyi Copper Development Programme which entails six copper projects becoming operational by 2023.

“A further three projects are greenfield projects which will have resource definition being undertaken with the objective of making them operational.”

She said the Ministry of Mines and Mining Development will be submitting proposals on the six projects in due course.

“The re-treatment of the Mhangura and Alaska copper dumps and the reopening of Angwa Mine in Chinhoyi and Shamrock Mine in Hurungwe were approved by Cabinet.

“Proposals on two other projects to make them a total of six will be presented in due course,” said Minister Mutsvangwa.

She said the Shamrock Mine project is a joint venture between the Zimbabwe Mining Development Corporation (ZMDC) and Govine Enterprises and is expected to reopen by the end of 2022 employing an estimated 4 500 people and generating US$32 million per annum.

The other joint venture is between ZMDC and Hongua International and involves the re-opening of Angwa Mine and the Chidzikwe dump which will be operational by mid-next year employing an estimated 400 people, generating an estimated US$33 million per annum.

Under the US$12 billion milestone, gold is expected to contribute US$4 billion, platinum US$3 billion while chrome, iron, steel diamonds and coal will contribute US$1 billion.

Lithium is expected to contribute US$500 million while other minerals will contribute US$1,5 billion.

By 2030, it is envisaged that the mining industry would be contributing at least US$20 billion.

In line with its objectives, the strategic roadmap has started creating a conducive environment for local and foreign investors.

The Chronicle

Diversified company, Padenga Holdings’ pivot to gold will get a boost by its listing on the Victoria Falls Stock Exchange (VFEX) particularly with regards to the higher export retention incentive, analysts say. 

Emerging challenges and weakness in its crocodile skins businesses compelled Padenga to strategically pivot to gold and the move has been showing upside with the gold subsidiary’s contribution to FY2020’s topline becoming increasingly significant.

According to Padenga’s FY2020 results, Dallaglio (the group’s gold subsidiary) accounted for over half of total revenues since its full consolidation into the group just last year. 

Over the year just ended, Dallaglio’s revenue amounted to $40,3 million, constituting 57 percent of total revenue at $71,3 million. 

The expected higher export retention due to its move to the VFEX will further boost revenues, say analysts at IH Securities. 

“Overall revenues for the business are expected to remain on a strong upward trend carried by extension of the gold mining operations as well as higher forex retention once
the migration to the VFEX is complete.

“The proposed transaction to migrate listing to the VFEX is primarily driven by the need to benefit from incentives articulated by the Ministry of Finance (and Economic Development) whereby companies listed on the VFEX will be entitled to higher retention rates of their incremental exports.

“In addition, the listing on the VFEX enables Padenga to raise capital in foreign currency from a deeper investor base to pursue viable acquisitions in related export sectors.” 

Padenga resumed trading on the VFEX on Monday, and as expected, trades have been at premium. 

Although observers highlight the hard currency benefits for local investors, they also point out the limited liquidity, which comes with listing on the new US dollar denominated bourse. 

“The listing will enable shareholders to unlock a ‘real’ US dollar valuation of the business, with capital gains and dividends realisable in hard currency. 

“Downside risk is liquidity on the VFEX itself which may potentially create an initial discount on valuation, we however, believe this will resolve itself in the medium term as other companies list on the VFEX.”

With the group taking advantage of the higher export retention incentive that comes with listing on the Victoria Falls Stock Exchange, analysts at IH have forecast revenue foe FY2021 to come in at US$86,81 million. 

“We project revenue for FY21 to amount to US$86,81 million. EBITDA is anticipated to be US$27,42 million in FY21, while the EBITDA margin is expected to marginally increase to 32 percent.

“Looking at Padenga’s components, comparable peers in the aquaculture industry have an average forward P/E (+1) to FY21 of 14.20x while peers in the gold mining industry have an average forward P/E (+1) 7.30x. The company’s P/E ratio is distorted by the attributable income,” said IH Securities. 

“Comparable peers in the aquaculture industry have an average forward EV/EBITDA (+1) to FY21 of 6.83x, while comparable peers in the gold mining industry have an average EV/EBITDA (+1) to FY21 of 9.77x. To value the business, we used a SOTP valuation approach which placed a TP of US$0,23 on the company.”

Business Weekly

As global copper prices continue firming and demand of the commodity likely to surge on massive capital expenditure on the green projects, Zimbabwe has set sights on resuming copper production by 2023, a Cabinet minister said this week.

While oil remain a key energy sector, analysts believe the use of copper will play a critical role in quest to replace internal combustion engine vehicles with electric cars.

In May this year, Goldman Sachs described copper as “the new oil”, suggesting that the mineral is now strategically most important resource in the commodity mix.

Nick Snowdon of Goldman Sachs Research noted the key areas of the green economy — whether electric vehicles, electric vehicle infrastructure, renewables, wind turbines, solar — the use of copper will be much higher than in the current economies. But he also warned of the supply side “that is completely under prepared.”

Zimbabwe last produced copper at Mhangura around 2000 before the mine was closed due to subdued international prices. 

The depth levels of the mine increased costs of production. Copper is currently trading at US$10 000 per tonne on the London Metal Exchange, the highest in a decade. 

In April last year, it was trading at below US$5 000, the same price it was selling in November 2015 and October 2016.

Goldman Sachs has projected the price would hit about US$15 000 per tonne by 2025.

This week, Zimbabwe’s Cabinet approved the Greater Chinhoyi Copper Development Programme, which aimed at operationalising six copper projects by 2023. 

Additional three new projects will have resource definition being undertaken.  

The Ministry of Mines and Mining Development will be submitting proposals of six projects to be revived including the re-treatment of the Mhangura and Alaska copper dumps while Angwa Mine in Chinhoyi and Shamrock Mine in Hurungwe will be re-opened. 

Proposals on other two unidentified projects will be presented in due course, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa, told a post Cabinet briefing on Tuesday.

Govine Enterprises will partner the Zimbabwe Mining Development (ZMDC) to reopen Shamrock Mine and is expected to resume operations by end of 2022, employing about 4 500 people and generating as much as US$32 million per annum.

Hongua International has entered into a joint venture with ZMDC to re-open Angwa Mine and the Chidzikwe dump which will be operational by mid-2022, employing an estimated 400 people and generate an estimated US$33 million per annum.

Zimbabwe is targeting to boost mineral exports to US$12 billion by 2023 and currently, gold, platinum, ferrochrome, diamonds and nickel constitute the majority of exports.

Green capex boom

Under the Paris accord, nearly 200 countries pledged to keep warming to below 2 Celsius, and strive for a ceiling of 1,5 Celsius by 2030 through Nationally Determined Goals (NDGs). The NDCs are climate action plans or commitments by signatories to the Paris accord to cut planet-warming emissions over the next decade.

“Well, I think when you look at the Paris Climate goals and, ultimately, the path to net zero emissions, if that’s going to be achieved predominantly via abatement; that is via electrification and renewable energy; then copper is going to be the most critical raw material to achieving that goal because it is the most cost effective conductive metal. It’s used in capturing, storing, transporting electricity,” said Snowdon.

“But I think the other parallel to oil, and certainly oil in the 2000s, relates to the lack of supply side preparation for this demand boom. 

“And I think that’s equally important to why we are talking about copper. Because I think you’ve got this very strong green demand story. 

“But you also have a supply side that’s completely under prepared. There’s no real investment in new mine projects. And so, essentially, the copper market is sleepwalking into, you know, a really sizable supply crunch akin to what we saw in the oil market back in the 2000s,” added Snowdon.

Zimbabwe recently launched a pilot project for lithium, a critical gradient in the production of batteries for electric cars. 

On Wednesday, the European Union proposed to phase out new petrol and diesel cars from 2035 as it looks to switch to zero-emission electric vehicles as part of its commitments to combat global warming.

Business Weekly

For most entrepreneurs and executives in Zimbabwe the moment mining is mentioned they pay close attention. This is because the mining sector presents many opportunities especially as the businesses generate foreign currency. This article looks at factors affecting the viability of mining in Zimbabwe especially the business and financial considerations.

Factors affecting viability

There are common factors that affect most businesses in Zimbabwe but there are some which are specific to mining. In this article focus is on positive cashflows or profitability, which though related are not the same. The factors are listed below.

Affecting revenue

International metal or mineral prices 

Volumes produced or capacity utilisation

Ore grade

Treatment of export proceeds. In the case of gold price paid to local miners.

Applicable exchange rates.

Affecting costs

High input costs

Depths of mines

Ore grade

Mining methods

High interest rates

Fiscal policy (transaction taxes, royalties)

Onsite administration and head office costs

Foreign currency availability to import

Depreciation or amortisation costs

Availability of foreign currency to import.

Capacity and its utilisation

Availability of working capital to fund operations

State of equipment, antiquated or new

Funds to invest in new equipment or expansion projects.

Availability of foreign currency.

The above factors are explained below.

Factors affecting revenue

Revenue, or the top line, is critical to a business and every business should strive to increase it. Factors listed above do affect the performance and viability of the mining sector.

International metal or mineral prices have a significant bearing on the revenue of local mining companies as most minerals from Zimbabwe are exported to foreign markets. Examples include gold, platinum, diamonds, chrome and nickel. 

In fact most minerals but gold are exported through the Minerals Marketing Corporation of Zimbabwe (MMCZ). A slump in the international prices caused by global demand and supply factors do affect revenues. For example gold and nickel have been affected before. 

Volumes of minerals that a mining house produces also affect its revenue. Volumes are affected by many factors such as the quality or grade of ore, capacity utilisation, mining methods, mining technology used and efficiencies of mining processes. 

Large mining houses tend to be better mechanised compared to medium size mines or artisanal mines. Volumes are also affected by power availability hence the need for guaranteed power supplies.

Exchange control policies, which affect treatment of export proceeds or local prices paid to miners, also affect revenue.

The Reserve Bank of Zimbabwe (RBZ) exchange control regulations require that a portion of the export proceeds, currently 40 percent, be liquidated into the local currency at the ruling official exchange rate. 

The balance may be retained by the miner for use, for example to meet costs including imports. For gold miners, bullion is sold to Fidelity Printers and Refiners (FPR). 

The price paid by FPR and the split thereof into foreign currency and local currency has a strong bearing on mining revenue. This is why miners and the Chamber of Mines of Zimbabwe (COMZ) are always advocating favourable exchange control and pricing policies. This also includes fair or realistic exchange rates.

Factors affecting costs

Some mining businesses prefer to classify their costs into C1, C2 and C3. By definition C1 costs are Net Direct Cash Costs incurred at each stage of processing stage from mining through to the delivery of recoverable metal, less revenue from by-products. Such costs include mining costs (materials, labour, power, reagents), processing costs (milling and concentrating), transportation, onsite administration, marketing, etc. 

C2 costs, or production costs, are made up of C1 plus Depreciation, Depletion and Amortisation. C3 costs, or Fully Allocated Costs, are made up of C2 plus indirect costs and interest charges.

High C1 costs will negatively affect a business. This is why a mining business has to pay attention to its mining methods, equipment, human skills, operating procedures, efficiencies, cost effective procurement, cost effective administration and marketing, amongst other issues. 

Low quality ore grade increases the cost of production per unit such as ounce, kg or tonne. Some mines blend low and high grade ore to manage their unit costs.

The depth of mines seriously affect the cost of mining and movement of the ore for processing. Generally the deeper the mine the higher the cost of mining.

Depreciation of plant and machinery and amortisation, though considered sunk and non-monetary costs add to costs and therefore affect profitability. 

Cashflow would have been affected at the time of payment. On the other hand fiscal factors in the form of the 2 percent intermediate money transfer tax (IMTT) on payments and non-deductible royalties, add to the cost of doing mining business.

High interest charges, especially during inflationary times, increase costs and erode liquidity and profitability. Mines should always monitor their finance costs.

Low inflation and stability of the local currency go a long way in bringing about viability. This is why businesses generally including the mining sector continuously and constructively appeal to Government and the RBZ for sustainable economic and monetary policies to assist businesses.

Monitoring profitability margins

In mining it is usually advisable to regularly monitor the M1 Margin (Revenue – C1 costs), M2 Margin (Revenue – C2 Costs) and M3 Margin (Revenue – C3 costs).

Capacity and capacity utilisation

Capacity is increased through expansionary investment. Funding may come from operations, shareholders, long term borrowings, etc. Increased capacity utilisation may be a result of more working capital or high demand for produced minerals.

 Disclaimer

This simplified article is for general information purposes only and does not constitute the writer’s professional advice. 

Godknows Hofisi, LLB(UNISA), B Acc(UZ), CA(Z), MBA(EBS,UK) is a legal practitioner / conveyancer with a local law firm, chartered accountant, insolvency practitioner, registered tax accountant, consultant in deal structuring, business management and tax and is an experienced director including as chairperson. He writes in his personal capacity. He can be contacted on +263 772 246 900 or [email protected].

KUVIMBA Mining House has injected US$6 million for an expansion drive for its Kwekwe-based gold operations at Jena Mine.

On completion the expansion is expected to ramp-up production from monthly 24kg of gold to 83kg – an increase of 330%.

Kuvimba Mining House chief executive David Brown confirmed the development.

“Jena Mine a subsidiary of Kuvimba Mining House has a strategic plan to restructure itself to a mid-tier gold producer through organic growth phases over a two-year period,” he said.

“The organic growth will be achieved through the plant and underground mine expansion optimisation and exploration of the ore body to a depth of 500m.”

“The aim is to ramp up ore production from the current 8 000 tonnes per month to 30 000tonnes per month over the next 24 months. This translates to an increase in gold production from the current 25kg to 83kg per month, which equates to a 330% increase. The crushing, milling and leach plant capacity will simultaneously be upgraded to match the ore production ramp-up schedule,” Brown said.

He said the project started last May, and in June, Jena Mine produced 31kg of gold indicating the positive development the expansion drive is bringing.

Jena Mine has a strong workforce of 703 employees.

The government and various local investment vehicles such as Sovereign Wealth Fund of Zimbabwe, Public Service Pension Management Fund, Deposit Protection Corporation, Insurance and Pensions Commission, Datvest Nominees, and National Venture Capital Company of Zimbabwe own Kuvimba Mining House Group.

NewZimbabwe

Zimbabwe’s gold deliveries more than doubled to 2.92 tonnes in June from 1.409 tonnes during the same period last year on incentives as experts say the upward trajectory would be maintained throughout the year.

Last month, the Reserve Bank of Zimbabwe (RBZ) introduced a 5% incentive for those who deliver above 20kg a month.

In addition, the RBZ cut royalties and the cost of importing cash on small scale miners to improve gold production in the country amid revelations the economy was losing over 2.5 tonnes per month to smuggling.

The central bank also allowed small scale miners to sell gold at the prevailing international gold price.

Fidelity Printers and Refiners  (FPR) acting general manager Peter Magaramombe told Business Times that the June output was bound to exceed two tonnes by a huge margin, given how miners flocked the premises.

“The June 2021 gold deliveries clocked 2.92 tonnes against 1.4 tonnes in the same period last year due to a reviewed buying price of gold for the artisanal miners and small scale miners,” Magaramombe said.

“This has resulted in a positive response that propelled June deliveries to breach the 2 tonnes line for the first time since May 2020.”

Small scale miners delivered around 1.7 tonnes against large scale miners’ 1.1 tonnes.

Overall, gold deliveries for the half year fell 6% to 9.948 tonnes from 10.6 tonnes during the same period in 2020.

In May gold deliveries fell 5% to 1.38 tonnes from 1.46 tonnes recorded during the same period last year with the positive output only recorded in March where deliveries improved 2% to reach 1.80 tonnes from 1.77 tonnes.

However, with the recent surge in production, mining experts are projecting a huge recovery during the second half of the year.

In January 2021, from the output of 0.997 tonnes, primary producers delivered 0.64 tonnes against small scale who delivered 0.355 tonnes, in February 2021, the small scale extracted 0.56 tonnes and primary producers delivered 0.61 tonnes.

Recently, an FPR executive revealed that the country could be losing over 30 tonnes yearly valued at US$1.7bn due to smuggling and unfavourable mining policies.

With all miners paid to date and payment at the prevailing international gold prices, a major surge in deliveries is expected.

Gold experts say the country’s sole gold buyer is guaranteed huge volumes of gold given the current set up.

Gold Miners Association of Zimbabwe chief executive Irvine Chinyenze said leakages are expected to drop due to the new lease of life given by the central bank.

“We expect more gold to be delivered to Fidelity as miners don’t want risk and prefer to use the formal channels. Low prices, taxes and high costs were pushing miners to sell to alternative markets,” Chinyenze said.

The country’s gold output plummeted 31% to 19.052 tonnes in 2020 from 27.66 tonnes recorded in 2019 due to Covid-19 effects, delay in payments and low foreign currency retention levels.

In last year’s mining report, mining experts advised that President Emmerson Mnangagwa’s government should pay gold producers at world prices to woo them into selling the yellow metal through the formal channels.

The report blamed FPR’s flawed centralised gold buying scheme and called for the law to bring complicit powerful politicians to book as they are believed to be sponsors of machete gangs’ violence in the Midlands Province and Mazowe, Mashonaland Central.

The report said the development of the gold sector is crucial if Mnangagwa’s government is to salvage prospects for Zimbabwe’s economic recovery from decades of economic stagnation.

But with all amendments done in June, the country could be heading towards a good direction with experts expecting gold output to near 100 tonnes next year if the current trend continues.

Business Times